valuation question

[tj22]

i'm looking at buying this old property so basically some one has bought this old property 700m2 block and subdivided it. and built 2 brand new units at the back. leaving the front old house 300m2 but now the old house's drive way will be used for the units at the back meaning theres no car space for the old house at the front. its a 3 bedroom house.

i was wanting to know much below normal valuation for a 3 bed old 300m2 house would this property be worth because it now has 2 units at the back? and doesn't have a driveway anymore.

its advertised at 240-260k the developers paid 360k for the house and the 700m2 block in 2012.

thoughts anyone?

 

[Hodge]

What's the suburb? That will make a difference.

 

[tj22]

how will the suburb make a difference, this scenario could be anywhere?

its 17kms from melbourne cbd

 

[Rolf Latham]

how will the suburb make a difference, this scenario could be anywhere?

its 17kms from melbourne cbd

Land value will determine the outcome a whole lot

This sort of thing will usually provide for a decent price in kew but poorer outcome in sunbury as an eg

Ta
Rolf

 

[tj22]

I'm aware of this, that is why i put up how much the developer had paid and when he had paid for it to give you an idea of how much the land was worth.

 

[marg4000]

Can the house be demolished and a new one built? This may affect the value.
Marg

 

[Hodge]

I'm aware of this, that is why i put up how much the developer had paid and when he had paid for it to give you an idea of how much the land was worth.

Doesn't really matter what the developer paid. He could have paid way too much or purchased it for a bargain. Suburb makes a huge difference.

 

[tj22]

thank you hodge very helpful..

in this scenario he paid market value... it's a scenario..

hey Marg, yes the house could be demolished if you wanted and another one built but i do not see the point to this the house is ok looking.

 

[Scott No Mates]

in many areas you wouldn't be able to subdivide without providing parking for each lot.

An instant value add would be to put in another driveway for the front unit.

 

[jezza888]

Hodge has a valid point in terms of how it affects valuation... cant you put a driveway on the otherside?

I dont know how they have subdivided and the front house has no car bays, surly this would of needed to be addressed when applying for SD.